NEW DELHI, 1 March 2024: Nearly 5,000 Farmer Producer Organizations (FPOs) have joined the Open Network for Digital Commerce (ONDC) platform, allowing them to sell produce directly to consumers nationwide. This initiative aligns with the government's goal of enhancing market access for farmers.
Boosting Farmer Income: The "Formation and Promotion of 10,000 FPOs" scheme aims to empower FPOs through digital marketing, online payments, and improved market linkages. Over 8,000 FPOs have registered under the scheme, exceeding 60% of the 10,000 target.
Financial Support: The government provides financial assistance to FPOs, including credit guarantees and matching equity grants. So far, credit guarantees have been issued to over 1,100 FPOs, covering more than 1 million farmers.
Long-Term Vision: FPO formation is seen as a crucial step towards self-sufficient agriculture. It aims to enhance production efficiency, increase farmer income, and create rural job opportunities. FPOs will focus on economies of scale, cluster-based production, and "One District One Product" initiatives for better market access.
Overall Objectives: The FPO promotion scheme aims to:
- Establish a supportive ecosystem for new FPOs.
- Enhance farm productivity and market linkages for higher farmer returns.
- Provide handholding support to FPOs for up to five years.
- Equip FPOs with entrepreneurial skills for long-term sustainability.
Registration Options: FPOs can register under the Companies Act or as cooperative societies.
This initiative signifies a significant step towards empowering FPOs and improving market access for Indian farmers.